Digital payment and business software provider Cirralto (ASX: CRO) has announced a deal with fintech company Fiserv (NASDAQ: FISV) and credit card giant MasterCard (NYSE: MA) that will enable it to process MasterCard transactions through its Spenda platform.
In an announcement today, Cirralto said it signed a business payments aggregator (BPA) agreement with the parties, in which Fiserv will serve as the exclusive merchant acquirer for Cirralto.
This latest deal builds on the partnership that began between Cirralto and Fiserv in March and follows a business payments solution provider agreement signed by Cirralto, Fiserv and other multinational credit card conglomerate Visa International (NYSE: V) at the start of December.
The BPA agreement will enable Cirralto to process MasterCard card payments as the merchant of record and is expected to improve the company’s digital payments margin by up to 40%.
“We are really enjoying our developing relationship with MasterCard and the opportunities that this brings for all parties involved,” Cirralto managing director Adrian Floate said.
Commercialising the Spenda platform
The BPA deal with Fiserv and MasterCard is for a 12-month term, commencing today. The agreement will be automatically renewed unless terminated.
Technical implementation of the agreement is already underway and is expected to be completed within eight weeks.
This implementation will “improve the customers’ onboarding journey” including AML/KYC identity verification checks, and when completed, it will improve the company’s transactional margins from the first quarter of 2021 onwards, Cirralto added.
The company will continue to deliver services under its existing arrangements while these changes are delivered.
“Our focus, as we move into 2021, will be to maximise and leverage the various opportunities that our new agreements deliver and use this as a cornerstone of our platform upgrade due to roll-out early in 2021,” Mr Floate said.
Cirralto’s Spenda platform is a fully integrated digital payment and business software solution that comprises a range of different products that can be used as standalone apps or connect to form a complete system.
Some of the Spenda products include cloud-based point of sale system SpendaPOS, inventory management tool SpendaStock, business-to-business management software SpendaMarket and SpendaCollect, which enables businesses to collect debt from customers.